HIVE Digital Technologies (NASDAQ: HIVE) saw its stock climb to $4.89 in early Nasdaq trading Tuesday, after the company reported a 158% jump in fiscal 2026 revenue to $297.8 million. The surge was fueled primarily by its digital-currency mining operations, but a disappointing fourth quarter and a 4.5% drop in Bitcoin prices limited the upward momentum. Shares traded between $4.18 and $4.93 on volume of 15.7 million.
Revenue Breakdown and Mining Growth
The company's fiscal 2026 results showed digital-currency mining revenue of $278.3 million, up 164% year-over-year, while high-performance computing (HPC) revenue—covering data-center services for AI, research, and business workloads—contributed $19.5 million. HIVE attributed the mining gains to a roughly four-fold increase in installed operational hashrate, which now stands at 25.3 exahashes per second (EH/s), up from 6.5 EH/s at the end of March 2025. The company operates 440 megawatts of power capacity across Canada, Sweden, and Paraguay, all powered by green energy.
Fourth-Quarter Weakness
Despite the annual strength, the March quarter posed challenges. HIVE reported fourth-quarter revenue of $71.8 million, with Bitcoin mining revenue falling 23.9% sequentially due to lower Bitcoin prices and rising network difficulty. Adjusted EBITDA for the quarter was negative $9.0 million, and the company posted a GAAP net loss of $148.4 million for the year, largely due to $221.3 million in non-cash items. HIVE held $10.8 million in digital-currency assets, including 150 Bitcoin, as of March 31.
AI Infrastructure Push
HIVE is increasingly positioning itself as a dual-engine company, combining Bitcoin mining with AI infrastructure. Its BUZZ HPC unit reported $35 million in contracted annualized recurring revenue (ARR) at fiscal year-end. A key milestone came in May, when a cluster of 504 NVIDIA B200 GPUs became operational at Bell Canada's AI Fabric site in Manitoba, used for training and running AI models.
The company's most ambitious project is a planned 320-megawatt AI "gigafactory" in the Greater Toronto Area, which BUZZ says could house over 100,000 GPUs when fully completed. HIVE expects the site to begin operations in the second half of 2027, with a projected capital investment of approximately C$3.5 billion.
Management Commentary
Executive Chairman Frank Holmes called fiscal 2026 "a defining year" for HIVE, highlighting progress with the "dual-engine" strategy. CEO Aydin Kilic described the company as "data-center builders and operators," while CFO Darcy Daubaras noted that the Paraguay expansion is "fully funded."
Market Context and Peer Performance
HIVE's stock movement tracked the broader crypto-mining and AI data-center space. Peers like MARA Holdings (MARA) edged up to $14.88, Riot Platforms (RIOT) added 61 cents to $28.86, and CleanSpark (CLSK) rose 14 cents to $18.95. The sector remains sensitive to Bitcoin's price and AI-compute demand.
Risks and Outlook
Downside risks include continued Bitcoin weakness, rising network difficulty, and the possibility that AI-compute demand may not meet HIVE's projections. The company has cautioned that its ARR figures are not GAAP revenue and do not guarantee future results. The Toronto AI project also carries risks of cost overruns, deployment delays, and GPU procurement issues. While the 158% revenue jump grabbed headlines, traders are watching whether HIVE's AI business can sustain margins when Bitcoin slides, making future performance dependent on execution in the AI infrastructure space.
